Market fears; Trouble for Merkel; Brexit job losses

1. Trouble in Berlin: Germany’s DAX was trading lower after Chancellor Angela Merkel’s plans to form a new government were thrown into disarray when a smaller party walked out of talks.

Merkel, who was trying to form a majority government in the wake of national elections in September, now faces a series of tough choices.

Her party could try again to form a coalition, or resort to a Merkel-led minority government. Another possibility is for snap national elections early next year.

The economic impact is likely to be limited, however.

“The economy is in such good shape with 2.5% growth, strong business confidence, full employment and a fiscal surplus that few major decisions need to be taken for the time being,” said Holger Schmieding, chief European economist at Berenberg Bank.

2. Brexit jobs losses: The European Union will announce new host cities on Monday for two coveted agencies that are leaving Britain because of Brexit.

The European Medicines Agency and the European Banking Authority, which employ roughly 1,000 people, had been based in London.

It’s one of the first concrete examples of organizations and jobs leaving Britain because of Brexit.